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Hello everyone and welcome back to the channel so in today’s video i’m going to be talking about the topic of facebook ads but specifically a question that a lot of people who run ads are always asking and that is when it comes to budgets how much should i spend when running a facebook ad now there is different schools of thoughts to this question but i’m going to
Be answering it based on my observations based on my experiments based on my experience and just my overall you know contributions to the question and what i think you should take away from this conversation so this is not going to be a very long video is just one for you to learn something from and possibly take something away from this video and impact it into
Any of your campaigns and you can get your results and feel free to share them with me before i continue i would like to announce the winner of this week’s course so if you just have any more the screen congratulations you just want to discourse all you have to do as always the same edm and if you want to win access to this course in the next video simply drop a
Comment below and share this video so when it comes to the issue of running facebook ads people always ask how much is right to spend how much should i spend and you know what is a low budget what is a high budget and all that so i’m going to tackle these questions from two angles first of all should you be spending money on facebook ads the answer is yes now how
Much should you be spending on facebook ads is going to be determined by a couple of things but i’m going to tell you why you even need to spend money to start with now advertising is a numbers game and when it comes to advertising on social media the more money you spend the more people that you can reach that’s basically how it works right the more money you
Spend the mom the mom who you can reach for the amanda expanded now when it comes something like facebook advertising if you are not spending a lot of money you are greatly limiting number of people that you reach with your post this doesn’t mean they are not going to get cae thought that you are not going to get conversions what simply means is that if you were
To get a certain number of conversions by virtue of how much they are spending is going to determine how many those conversions are actually going to be so let’s say on a normal day let me just give an example let’s say you are spending five dollars on an ad and normally you would get about through conversions on that five dollars right that’s we are going to be
Capped at for example if you increase that budget and maybe your business you want to be getting about 10 conversions per day and you increase that budget to like $50 per day or even $100 per day you can start getting more results that we write by spending more now what most people like to think of is they think they can spend the least amount of money let’s see
That five dollars for example but then they want to get the maximum amount of others from that five dollars now while this may happen once in a while it is not something that you can skill it is not a business model that you can replicate it’s not something that you can’t copy because probably your adwords went viral for some reason or people were able to share
It but you can’t guarantee that that’s going to happen a lot of times and so you can’t really judge and use that as the benchmark for all the other adwords they are going to be running because it’s simply just not possible it’s not possible for you to get a kind of results every single time and even if you were lucky by some stroke of luck you were able to get a
Kind of result on every adwords you cannot have that kind of results once you begin to increase the amounts that you’re spending so that’s just it right if you want to get more results you have to be willing to spend more on the adwords and the second most important thing people like to ask is how much exactly should i spend so i’m not going to give you an exact
Number but i’m going to give you a formula that you can use to calculate this by yourself so what you want to do is first of all figure out what your objective is for running that ad how many conversions do you actually need to get so for example let’s say your business you want to get about a hundred seals per week right a hundred sales per week or let’s say your
Own resume spidy i’m just giving an example right you want to get a hundred seals for d now you need to ask yourself how much am i willing to spend to get a new customer the product they are selling is about ten thousand nara or so now you want to ask yourself how much how much am i willing to spend in order to get that once you – ten thousand so what this means
Is i need to determine what your marketing cost is you’re not saying that you must spend the amount of money to get the customer we are saying this is the amount i’m willing to spend in order to get a customer right so when you’re running your adverts you’re going to be working with a number at the back of your mind let me give an example just like i said you
Had you wanted to get a 100 orders perdy right and then you say my protocol is $10,000 but i’m willing to spend 2000 era to get a new customer right so this is going to inform your buying decision therefore you know that if you want to get up at least a hundred sales per day you should be willing to spend about $200,000 on adverts because if you get those hundred
Seos your money is going to be how much you’re going to make 1 million in revenue now this doesn’t mean you should start spend it out – on reiki in one day but it just gives you a mind frame that you can’t work with so if you had a little budget to start with you’re not going to start expecting to get all the sales in the world if you are spending 2009 on an agua
Because you know that for that 2,000 are what your marketing says is that you should at least get once you when you spend 2009 so if you are spending 4,000 now on an advert it means that you should get at least two sales before you settle an adversity failure if you are spending 6000 era on your campaign it means that you should get at least three seals in order
For that campaign to to be good right but you’re definitely going to get more than those amount of orders i’m just saying that that’s a very good way to judge how much you’re spending versus how much you are willing to make the mistake that a lot of business owners make is that they just have this very vague idea of what a conversion is and you have no way they
Have no benchmark they have no standard for calculating how much exactly they should be making on how much they are spending so this is a framework that you can use to know how much you should be willing to spend in order to get results for your advance so that’s pretty much it for this video like i said it’s going to be a very short one but over the next couple
Of days i’m going to be putting out more videos probably talking a lot more in depth into facebook ads because facebook ads as some of you might know is one of the ways i’m it would you know help businesses and brands and also make money for myself and that’s what i’m going to be sharing with you also going to share more knowledge on things that i’ve discovered
Testing different stuff and even the new changes that come into facebook now in fact how you’re going to be running your facebook and your instagram ads so if you want to learn more about facebook ads i do have a program that goes in-depth into everything above face because i’m going to leave it in the description and also i’m going to leave a link to my telegram
Community so you can join there and get all the agenda notifications once released any new content on this channel or any of my other channels everything is going to be updated on that elegant channel so all the links are going to be in the description and also check out the other videos on the channel especially the ones that have to do with email marketing because
We’re going to be talking about that very soon a lot and also the ones that have to do with sales funnels and landing pages all right telecom you in next time i mean can we see do have wonderful day
Transcribed from video
How Much Should You Spend on Facebook Ads? By Ken Ndubisi
